STOCK MARKET WATCH -- Friday, 9 March 2012

[wobblie]

30. Politicalization of UI is the problem

The overwhelming majority of "improper payments" are NOT the result of the actions of the unemployed claimant. Rather they are the result of the various adjudicators (claims examiners, administrative law judges, state review boards and civil judges) not agreeing on what constitutes "unemployed through no fault of their own". On the one hand, as the economic debacle called the "great recession" got going, states made the decision to pay as many claimants as possible to keep the economy chugging along. Every decision to pay a claimant can be appealed by the employer who's State Unemployment Tax Assessment (SUTA) is ultimately charged for the benefits. On appeal many of the initial decisions to pay claimants are being reversed resulting in the "improper" and "overpayment". Employer negligence is in fact a major reason why improper payments occurred, (no mention of that in the article--can't say anything bad about the "job' creators.) The war on those who received a UI benefit is just getting going. In Michigan 10's or thousands of "Fraud" adjudications have been issued to claimants on the basis of nothing more than a non-response by the claimant (as if unemployed people are not forced to move) . These "fraud" findings impose HUGE penalties plus interest on the claimant (some will owe over a 100 thousand in improper payments, penalties and interest) some will become debt slaves to the state.The draconian measures implemented by Michigan will soon be followed in other states where the Republicans control.